Student Loan Summary
August 15, 2010
What are some future consequences of borrowing too much debt?
Some of the most telling future consequences of borrowing too much debt would be evictions, foreclosures, declaring personal bankruptcies, wage garnishments, divorces, emotional break downs, higher than normal interest rates on loans, rejection of application for loans, ruined credibility, savings and retirement plans wiped out, and an undesirable credit report and score.
Debt affects people in different ways and has a major impact on the life of each individual. It often determines how they will be able to live their lives. There are only two ways to acquire things that you cannot afford to pay out of pocket. Save until you have accumulated enough money to buy, or borrow the money with the promise you will pay the money back with interest over time. When borrowing, the best thing for anyone to do is always borrow money they are sure they can repay, be prompt in their payments, and pay more than the minimum amount to avoid future financial consequences in your life than you have already.
How do you plan on repaying your student loans?
Regarding the Stafford Loan that is offered to University of Phoenix students, you have six months following college graduation before repayment of your student loan begins. After this time, you are responsible for the regular monthly payments, which were originally agreed upon between the student and the lender.
This grace period should be used wisely. The goal of a student at this point, is to secure a job that allows him or her to reasonably manage all of their monthly bills, including their student loan. If a problem should arise where you cannot make ends meet during your grace period, immediately contact your financial advisor to aid you in modifying your repayment terms.
I have opened a separate savings account strictly for college that I contribute to each week.